Industry shrugs off impact of US corn imports

The Federation of Livestock and Aquaculture joined with other livestock associations to declare planned US corn imports will not harm local corn farmers, instead reducing production costs for the livestock industry, which is facing a shortage of roughly 800,000 tonnes of corn required for feed production.

Pornsil Patcharintanakul, president of the Thai Feed Mill Association and secretary-general of the Federation of Livestock and Aquaculture, said the livestock sector depends on imported feed ingredients. The country requires about 9 million tonnes of feed corn annually, but produces only 5 million tonnes domestically, resulting in a shortfall of 4 million tonnes.

Each year, roughly 3.2 million tonnes are imported, including 1.5 million tonnes of corn from neighbouring countries and 1.7 million tonnes of wheat. Despite these imports, a deficit of about 800,000 tonnes remains, he said.

Thailand now requires burn-free certification for all feed corn and wheat imports to curb cross-border air pollution, which means corn imports from Myanmar are expected to fall to 1.1 million tonnes this year, said Mr Pornsil.

The planned import of 1 million tonnes of US corn will not affect local corn prices or farmers, as it will be restricted by the 3:1 ratio measure that requires importers to purchase three parts domestic corn for every one part of corn or wheat imported, he noted.

"The proposed import of 1 million tonnes of US corn will not replace Thai corn. It is a substitute for some of the 1.7 million tonnes of wheat currently being imported. The remaining feed grain shortage of about 800,000 tonnes would still exist," said Mr Pornsil.

The corn imports are meant to mitigate the impact of US trade tariffs, as the negotiation between the two countries are ongoing, he said.

Thai feed corn prices now exceed 13 baht per kilogramme, partly due to the government's increasingly stringent import controls, noted Mr Pornsil.

Moreover, delayed rainfall and drought conditions have postponed corn plantation, pushing prices higher even as livestock prices have declined.

Industry representatives called on the government to review import policies to ensure fairness for all stakeholders, including those in the livestock sector.

Somboon Watcharapongphan, president of the Thai Broiler Association, said rising corn prices have increased feed costs, adding a burden to livestock producers, including broiler farms.

"Broiler farmers are incurring losses, and some have begun to reduce production. This will affect chicken exports and ultimately consumers," he said.